Balchem Corporation · NASDAQ:BCPC
Balchem — Jefferies 2016 Industrials Conference
27 slides from Balchem's conference presentation, August 2016
Slide 1: Balchem Corporation Jefferies 2016 Industrials Conference
Balchem Corporation Jefferies 2016 Industrials Conference August 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this pres
Slide 3: Balchem Corporation
Balchem Corporation Balchem develops, manufactures, and markets specialty ingredients for health and wellness markets. Highlights • NASDAQ: BCPC • Founded in 1967 • Headquarters: New Hampton, NY • Approximately 1,000 Employees • 17 Manufacturing Sites: - 16 in North America - 1 in Europe • 5 Technol
Slide 4: Key Investment Highlights
Key Investment Highlights Leading Positions in Attractive Growing Markets Creating New Demand Through Innovation Delivering Healthy Margins Generating Solid Free Cash Flow Available for Reinvestment Led by a Strong, Experienced Management Team 4
Slide 5: Balchem at a Glance
Balchem at a Glance HUMAN NUTRITION & HEALTH ANIMAL NUTRITION & HEALTH Markets Served Solutions Markets Served Solutions • Food and • Micro-encapsulation • Dairy • Micro-encapsulation Beverage • Choline • Poultry • Choline • Supplement • Chelated Minerals • Companion • Chelated Minerals • Infant & T
Slide 6: Acquisition of Albion Minerals
Acquisition of Albion Minerals Balchem acquired Albion International in February 2016 Highlights Human Nutrition Key products include: • Synergistic with our Human Nutrition and Health • Magnesium segment, delivering customized food and beverage • Iron ingredient systems, and essential nutrients thr
Slide 7: Sales / Adj. EBITDA / Net Earnings
Balchem Corporation Sales / Adj. EBITDA / Net Earnings (Dollars in Millions, except per share data) 2015 2011 CAGR Sales $552.5 $291.9 17.3% Adjusted EBITDA 140.5 69.2 19.4% As a percent of sales 25.4% 23.7% Net Earnings 59.7 38.8 11.4% Diluted Net Earnings/Share $1.89 $1.28 10.2% 20% FY 2015 Sales
Slide 8: Balchem Consolidated Results Q2 2016 Results
Balchem Consolidated Results Q2 2016 Results Q2 2016 Q2 2015 Revenue $ 138.8 $ 134.8 Gross Margin % 33.5% 31.1% Net earnings $ 14.2 $ 14.9 Adjusted EBITDA $ 39.5 $ 35.0 Adjusted EBITDA % 28.5% 26.0% Adjusted earnings per share $ 0.66 $ 0.62 Note: Dollars in Millions, except percent and per share dat
Slide 9: Balchem Consolidated Results Year to Date 2016 Results
Balchem Consolidated Results Year to Date 2016 Results H1 2016 H1 2015 Revenue $ 273.9 $ 279.6 Gross Margin % 32.6% 30.4% Net earnings $ 26.0 $ 30.1 Adjusted EBITDA $ 75.0 $ 71.1 Adjusted EBITDA % 27.4% 25.4% Adjusted earnings per share $ 1.24 $ 1.24 Note: Dollars in Millions, except percent and per
Slide 10: Balchem Consolidated Results: Net Revenue
Balchem Consolidated Results Net Revenue (Dollars in Millions) $600 $500 $400 $300 2016 $541 $553 $139 Q2 $200 $337 $292 $310 Q1 $100 $135 $0 2011 2012 2013 2014 2015 YTD 10
Slide 11: Balchem Consolidated Results: Adjusted EBITDA
Balchem Consolidated Results Adjusted EBITDA (Dollars in Millions) $160 $140 $120 $100 $80 2016 $140 $60 $122 $40 Q2 $40 $73 $80 $69 Q1 $20 $35 $0 2011 2012 2013 2014 2015 YTD 11
Slide 12: Historical Consolidated Results: Adjusted Earnings Per Share
Historical Consolidated Results Adjusted Earnings Per Common Share $3.00 $2.51 $2.50 $2.21 $0.66 $2.00 $1.54 $0.67 $1.37 $1.41 $1.50 $0.61 $0.37 $0.34 $0.35 $0.65 $1.00 $0.40 $0.62 $0.66 $0.38 $0.38 $0.40 $0.53 $0.50 $0.34 $0.35 $0.62 $0.58 $0.32 $0.33 $0.38 $0.34 $0.00 2011 2012 2013 2014 2015 2016
Slide 13: Human Nutrition & Health
13 Human Nutrition & Health BALCHEM
Slide 14: Human Nutrition & Health at a Glance
Human Nutrition & Health at a Glance HUMAN NUTRITION & HEALTH Markets Served Solutions • Food and • Micro-encapsulation Beverage • Choline • Supplement • Chelated Minerals • Infant & Toddler • Powder, Flavor, & Formula Cereal Systems • Organic Cereal HUMAN NUTRITION 50% 14
Slide 15: Human Nutrition & Health Year to Date Performance and Growth Platforms
Human Nutrition & Health Year to Date Performance and Growth Platforms Q2 2016 Q2 2015 YTD 2016 YTD 2015 Revenue ($M) $ 74.8 $ 67.2 $ 146.4 $ 135.0 Adjusted EBITDA ($M) $ 20.0 $ 17.2 $ 38.7 $ 33.1 Leveraging Growth Opportunities Across The Segment FDA Recommended Daily Intake for Choline Platforms G
Slide 16: Animal Nutrition & Health
16 Animal Nutrition & Health BALCHEM
Slide 17: Animal Nutrition & Health at a Glance
Animal Nutrition & Health at a Glance ANIMAL NUTRITION & HEALTH Markets Served Solutions • Dairy • Micro-encapsulation • Poultry • Choline • Companion • Chelated Minerals Animal • Amino Acids and Other • Swine Ruminant Nutrients ANIMAL • Aquaculture NUTRITION 30% 17
Slide 18: Animal Nutrition & Health Year to Date Performance and Growth Platforms
Animal Nutrition & Health Year to Date Performance and Growth Platforms Q2 2016 Q2 2015 YTD 2016 YTD 2015 Revenue ($M) $ 38.4 $ 41.6 $ 77.6 $ 84.3 Adjusted EBITDA ($M) $ 9.4 $ 9.2 $ 17.9 $ 19.3 Science Based Nutritional Efficiency Platforms Companion Animal & Aquaculture Market Penetration Growth Na
Slide 19: Specialty Products
19 Specialty Products BALCHEM
Slide 20: Specialty Products at a Glance
Specialty Products at a Glance SPECIALTY PRODUCTS SPECIALTY PRODUCTS 10% Markets Served Solutions • Medical Device • Chelated Minerals Sterilization • Ethylene Oxide • Nut and Spice • Propylene Oxide Pasteurization • Plant Nutrition 20
Slide 21: Specialty Products Year to Date Performance and Growth Platforms
Specialty Products Year to Date Performance and Growth Platforms Q2 2016 Q2 2015 YTD 2016 YTD 2015 Revenue ($M) $ 20.3 $ 13.8 $ 37.4 $ 27.4 Adjusted EBITDA ($M) $ 9.7 $ 7.1 $ 17.6 $ 13.6 Platforms New Applications for Pasteurization/Fumigation Growth Geographic Expansion of Plant Nutrition Expand Pl
Slide 22: Industrial Products
22 Industrial Products BALCHEM
Slide 23: Industrial Products at a Glance
Industrial Products at a Glance INDUSTRIAL INDUSTRIAL PRODUCTS PRODUCTS 10% Markets Served Solutions • Oil & Gas • Micro-encapsulation Fracking • Choline • Electronics • Choline Derivatives • Fertilizer 23
Slide 24: Industrial Products Year to Date Performance and Growth Platforms
Industrial Products Year to Date Performance and Growth Platforms Q2 2016 Q2 2015 YTD 2016 YTD 2015 Revenue ($M) $ 5.3 $ 12.1 $ 12.5 $ 32.9 Adjusted EBITDA ($M) $ 0.5 $ 1.5 $ 0.9 $ 5.1 Platforms Growth Green Clay Stabilization Solutions Low Cost Clay Stabilization 24
Slide 25: Looking Ahead
Looking Ahead BALCHEM
Slide 26: Future
Future • Positioned For Growth in Attractive Markets ‒ Organic ‒ Acquisitions/Partnerships • Creating Demand Through Innovation • Acquisition of Albion Adds Key Technologies, International Reach, and Synergistic Opportunities • Building a Global Animal Nutrition & Health Business • Expanding Human N
Slide 27: "At our core, we are a health and wellness company."
“At our core, we are a health and wellness company.” Ted Harris, President and CEO 27